Ofcom has launched its first big review of the mobile phone industry after a rise in the level of consumer complaints.
The communications regulator said although 90 per cent of mobile users are happy with their service, many are not and the number of complaints are on the rise.
Ofcom said it will be consulting with the public, consumer advocates and the industry to see where regulation can improve the market.
According to Ofcom, the probe is needed as the industry has grown so fast. The mobile sector in 2007 saw the five network operators receive retail revenues of £15.1 billion.
The number of mobile phone subscriptions in the UK stands at over 70 million, exceeding the population of 60 million with households now more likely to have a mobile service than a fixed service, Ofcom said.
Some 85 per cent of the adult population in the UK now have a mobile “and it has become the device that we would not leave home without”, the regulator added.
The consultation will also look into mobile termination rates, the charges networks apply when connecting a call from another network.
Ofcom set termination rates in 2007 after considering them too high, but wants to see if there is a better way to regulate the practice.
In March, the regulator said it would be cracking down on the mobile phone sector, after a voluntary code introduced last summer did not bring change.
The regulator is now looking at bringing in powers to fine firms up to ten per cent of their profits for failures in sales practices and putting further pressure on mobile phone operators and retailers.
Created in 2002, Ofcom regulates all parts of the communications industry, but is not always popular.
Last week, ITV’s director of television Peter Fincham accused Ofcom of acting like “traffic wardens” and stifling the creativity of television.
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